When Is the Best Time to Partner With a Third-Party Logistics Company?

warehouse workers in safety vests moving boxes on shelves in organized storage facility.

Managing logistics effectively becomes more and more important as a business grows. Warehousing, inventory management, order fulfillment, and transportation can require significant time and resources. As such, partnering with a third-party logistics company at the right stage can help businesses improve efficiency while gaining access to the space and logistics capabilities they need.

When Your Business Is Growing

Growth is one of the clearest signs that it may be time to consider a 3PL partner. As order volumes increase or a company expands into new markets, its existing warehouse space and logistics processes may no longer be sufficient.

A 3PL can provide access to additional warehouse space without requiring a business to invest in purchasing or operating its own facility. This can be particularly valuable for companies experiencing rapid growth or expanding their distribution footprint into new geographic areas. What’s more, businesses may also benefit from a 3PL when seasonal fluctuations create changing storage requirements. Instead of maintaining excess warehouse capacity throughout the year, companies can find logistics solutions that better accommodate their current needs.

When Logistics Is Taking Resources Away From Your Core Business

Managing logistics internally requires employees, technology, equipment, warehouse space, and ongoing oversight. As these responsibilities become more complicated, they can take valuable attention away from product development, sales, customer service, and other core business functions.

Thankfully, if you work with an experienced third-party logistics provider, they help businesses leverage established logistics resources and expertise. Depending on the operation, a 3PL relationship may assist with warehousing, distribution, fulfillment, transportation, and other supply chain requirements.

The right time to explore a partnership is often before logistics problems begin affecting customers. Frequent shipping delays, limited storage capacity, inefficient inventory handling, or difficulty keeping up with orders can indicate that existing processes need additional support.

When You Need Warehousing in New Markets

Expanding into a new region does not necessarily mean establishing a warehouse operation from the ground up. Businesses entering new markets can use a 3PL relationship to identify strategically located facilities that support their distribution goals.

Affiliated Warehouse Companies represents a wide assortment of warehouses throughout North America, helping businesses locate appropriate warehousing solutions at competitive rates. Our extensive network allows us to assist companies looking for space throughout the United States, Canada, Mexico, and Puerto Rico.

If you’re looking for a reliable third-party logistics partner, contact us today